Zuckerberg also announced that Oculus will spend an additional $250 million on "great software experiences" which are the next frontier of VR.

"More than a million people actively use virtual reality products every month. This is happening, and we have a lot to be excited about," Zuckerberg told the gathering.

"The funding is an addition to the $250 million Oculus has already pledged to content development.

Talking about the new headset in the making, Zuckerberg told the gathering: "We're working on this, and it's still early. This is the kind of thing we believe will exist when you combine hardware innovation and next generation software experiences."